Key takeaways from WSJ REPORTS: LEADERSHIP, The Cloud Grows Up:
“The word agility appears in every CIO conversation. When you ask people why they are buying cloud-based applications, 51% say it’s because of agility. Only 17% will say it’s because of cost.”
Applications Shift – ERP priority rankings significantly decreased over past year, most likely due to CIOs being in an “early in a phase of revisiting…ERP infrastructure…I think we will move to a federated, more loosely coupled ERP environment that enables us to select applications that are not on-premise but that end up being cloud-based.”
This move to a federated ERP environment is a threat to SAP and to Oracle as Salesforce.com is slowly evolving into a potential future competitor, especially when considering that “… business executives are asking to have somebody that looks at digitization across the enterprise. It’s a strategy role…with teeth. An increasing number of these new chief digital officers…have larger organizations reporting to them…About 40% of those chief digital officers report…to the CEO.”
Given that chief digital officers will typically come from customer-facing roles, which often use Salesforce.com as their system-of-record, SAP and Oracle have reason to be concerned.
via CIOs Lean More Heavily on the Cloud – WSJ.com , Feb. 10, 2014 4:47 p.m. ET.